Nexans Shares Drop 4.89% and Enter Extreme Oversold Territory

Breaking Key Support Levels

Dropping nearly 5% from the previous day, Nexans has fallen below its support threshold at 120.40 euros, a level that had previously served as a reference floor for the stock. The price now touches the lower boundary of the Bollinger Bands (116.72 euros), indicating unusual selling pressure. Furthermore, the Relative Strength Index (RSI), which measures the upward or downward momentum of a stock over 14 sessions, is at 21, indicating a marked oversold condition—a rarely reached territory that signals a short-term bearish excess. The stock is now significantly below its 20-day (131.91 euros), 50-day (128.50 euros), and even 200-day (122.33 euros) moving averages, confirming a deterioration in momentum across all time scales. Over a week, the stock has fallen by 5.13%, and over three months, the decline amounts to 8.62%.

Geopolitical Tensions and Rising Energy Costs

Nexans' correction occurs in a session marked by a resurgence of geopolitical tensions related to the conflict in the Middle East. Military operations in Iran have led to a surge in European oil and natural gas prices, with the latter jumping nearly 25% on the TTF market. The avoidance of the Strait of Hormuz by major global shippers is increasing transport costs and fueling fears of a shock to supply chains. European stock markets are down 1 to 3% in this context, but Nexans is showing a decline significantly above the general market trend. For the French cable manufacturer, the rise in energy prices could impact production costs, as copper and raw materials used in cable manufacturing are sensitive to freight and energy prices. Nevertheless, over the past year, the stock still maintains a gain of 16.6%. The upcoming financial disclosures, with first-quarter results expected on April 28 and the annual general meeting scheduled for May 21, will be important milestones to assess the concrete impact of this new environment on the group’s activity.